CIC COMMERCIAL PROPERTY COMPLETE
EXAMINATION TEST QUESTIONS WITH
VERIFIED SOLUTIONS
●● ACV vs Replacement Cost
Answer: ACV - Default valuation method of Property policies. Cost to
replace covered property at time of the loss, minus depreciation.
RC - Valuation commonly desired, but usually must be requested.
Replace covered property at a premises with like kind and quality in
today's dollars. Triggered with (X) on Dec Page.
●● Additional Building Property CP 14 15
Answer: 1. Used to clarify certain items which might be in a "gray area"
are covered under Building.
-Permanently installed machinery and equipment
-Fixtures, including outdoor fixtures
2. Covers certain BPP under Building (i.e. freezer cases in supermarkets,
large production equipment)
3. Must already have coverage for Building
,●● Additional Coverages
Answer: 1. Collapse
2. Fungus (only when result of "specified causes of loss") other than fire
or flood. Up to $15K
--CP0431 to increase.
Addl:
1. Property in Transit up to $5K (other than CCC of salesperson)
2. Cost to tear out and replace
3. Glass
●● Additional Coverages in CP 00 30 (AICE)
Answer: a. Civil Authority
b. Alterations
c. Extended Business Income
d. Interruption of Computer Operations
●● Additional Property Not Covered CP 14 20
Answer: 1. Used to add specific types of Building property or BPP to list
of "Property Not Covered" if named insured/insurer does not want or
need to cover such property (e.g. tenants improvements & betterments
for owner of building where lease requires tenant to insure these)
2. May also make an unacceptable risk acceptable
, ●● Agreed Value
Answer: Optional coverage on CP Dec Page. Expiration date only.
Suspends coinsurance clause. Can apply to covered property and/or
Business Income.
●● Anti-Concurrent Causation Exclusions
Answer: Attempts to eliminated coverage for loss caused by one of
these, even if the loss resulted from multiple causes (and one of the
causes is Covered)
GO NEW WUF
a. Ordinance or Law
--Ordinance or Law Coverage CP 04 05
---Cvg A - Loss to Undamaged Portion of Bldg (included in Building
Limit)
---Cvg B - Demo Cost of Undamaged Portion of Bldg (can have separate
LOIs)
---Cvg C - Increased Cost of Construction
b. Earth Movement
c. Governmental Action
d. Nuclear Hazard
EXAMINATION TEST QUESTIONS WITH
VERIFIED SOLUTIONS
●● ACV vs Replacement Cost
Answer: ACV - Default valuation method of Property policies. Cost to
replace covered property at time of the loss, minus depreciation.
RC - Valuation commonly desired, but usually must be requested.
Replace covered property at a premises with like kind and quality in
today's dollars. Triggered with (X) on Dec Page.
●● Additional Building Property CP 14 15
Answer: 1. Used to clarify certain items which might be in a "gray area"
are covered under Building.
-Permanently installed machinery and equipment
-Fixtures, including outdoor fixtures
2. Covers certain BPP under Building (i.e. freezer cases in supermarkets,
large production equipment)
3. Must already have coverage for Building
,●● Additional Coverages
Answer: 1. Collapse
2. Fungus (only when result of "specified causes of loss") other than fire
or flood. Up to $15K
--CP0431 to increase.
Addl:
1. Property in Transit up to $5K (other than CCC of salesperson)
2. Cost to tear out and replace
3. Glass
●● Additional Coverages in CP 00 30 (AICE)
Answer: a. Civil Authority
b. Alterations
c. Extended Business Income
d. Interruption of Computer Operations
●● Additional Property Not Covered CP 14 20
Answer: 1. Used to add specific types of Building property or BPP to list
of "Property Not Covered" if named insured/insurer does not want or
need to cover such property (e.g. tenants improvements & betterments
for owner of building where lease requires tenant to insure these)
2. May also make an unacceptable risk acceptable
, ●● Agreed Value
Answer: Optional coverage on CP Dec Page. Expiration date only.
Suspends coinsurance clause. Can apply to covered property and/or
Business Income.
●● Anti-Concurrent Causation Exclusions
Answer: Attempts to eliminated coverage for loss caused by one of
these, even if the loss resulted from multiple causes (and one of the
causes is Covered)
GO NEW WUF
a. Ordinance or Law
--Ordinance or Law Coverage CP 04 05
---Cvg A - Loss to Undamaged Portion of Bldg (included in Building
Limit)
---Cvg B - Demo Cost of Undamaged Portion of Bldg (can have separate
LOIs)
---Cvg C - Increased Cost of Construction
b. Earth Movement
c. Governmental Action
d. Nuclear Hazard
